All major metro areas of Texas are popping, red hot, some hotter than others but Texas is hot (in more than the marketing area too!)

Sounds like you already spotted that red flag ;) I'm glad to hear you're looking in Birmingham!

BIG RED FLAG HERE ...

Only experienced investors will have the ability to do the quick turnaround on inspections and identify red flags quickly enough to benefit from using the site.

There were no red flags to do this test, the buyer is just very thorough.  

If you're calculating out a negative cash flow that's a huge red flag.

There isn't time to structure a deal-by-deal basis, especially not in the red-hot market I'm in.

If your bank/lender cannot appraised the property for the loan, that is a big red flag! 

I see some red flags, and I'm wondering what other investors' experiences have been in this kind of situation.The potential tenants seem reluctant to apply.

It seems like you really need to go the whole hog and buy a $200-$300K property, scrape and rebuild for $400K or so, and sell for ~$1M to see the true margin that makes things repeatable and scalable.At least, that's what I'm seeing in terms of a strategy that does not rely on the red hot appreciation of the last few years to carry values over a given 6-12 month period.